The billion-dollar budget item Garcetti didn't mention in his State of the City speech

When Los Angeles Mayor Eric Garcetti unveiled his proposed budget last week, he called a $176-million effort to battle homelessness his top priority, highlighted a $35-million plan to mend broken streets and promised $2 million to clean up graffiti.

He did not mention the expenditure that dwarfs all of those combined: more than $1.1 billion to pay for city employees’ pensions and healthcare after they retire.

The cost of retiree benefits amounts to nearly 20% of the city’s general fund, which pays for basic city services. In 2002, the figure was less than 5%.

“Every municipal government is feeling this pain,” said Joe Nation, a former Democratic state legislator who teaches at Stanford's Institute for Economic Policy Research.

When Los Angeles Mayor Eric Garcetti unveiled his proposed budget last week, he called a $176-million effort to battle homelessness his top priority, highlighted a $35-million plan to mend broken streets and promised $2 million to clean up graffiti.

He did not mention the expenditure that dwarfs all of those combined: more than $1.1 billion to pay for city employees’ pensions and healthcare after they retire.

The cost of retiree benefits amounts to nearly 20% of the city’s general fund, which pays for basic city services. In 2002, the figure was less than 5%.

“Every municipal government is feeling this pain,” said Joe Nation, a former Democratic state legislator who teaches at Stanford's Institute for Economic Policy Research.